THE PROBLEMS OF ARMENIAN BRANDY MAKERS

S. A. Movsisyan

Abstract

This research aims at identifying the problems faced by Armenian brandy makers. This is a quantitative study based on a secondary data. The secondary data includes annual time-series data ranging from 1970 through 2014, which is obtained from the Central Statistical Department of the Soviet Republic of Armenia, National Statistical Service of the Republic of Armenia, Customs Service of the Republic of Armenia, United Nations Comtrade Database and reports. The ﬁrst part of the research paper presents the history of the Armenian brandy production. The second part describes the type of the data and analysis methods. The third part presents the results of the comparison and assessment of the world brandy market, main economic indicators characterizing brandy industry in Armenia, including territory of productive vineyards and average yield of vineyards during Soviet Union

(i.e. 1970-1988) and post-soviet times (i.e. 1995-2014), Armenian brandy production, consumption, import and export prior to ﬁnancial crisis (i.e. 2004-2008) and following ﬁnancial crisis (i.e. 2009-2013), export structure of the Armenian brandy, rum, gin, vodka, liqueur by country over the period 2013-2014. The fourth part of the paper summarizes the major problems of Armenian brandy makers in the process of raw material procurement, brandy manufacturing, quality management and standards, acquiring supplementary materials and packaging, marketing and distribution of brandy, international transportation and the objectives of brandy export-oriented policy of the Republic of Armenia. Finally, the paper proposes recommendations for Armenian brandy makers for entering new markets.